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(AllianceNews) - Nostra Terra Oil & Gas Co PLC on Monday said production from the Fouke 2 well in the US state of Texas is exceeding internal expectations.
Shares in the London-based oil and gas company were trading 4.4% higher in London on Monday morning at 0.72 pence. The stock his 0.82p earlier Monday, a new 52-week high.
The company said the 32.5%-owned Fouke 2 well, at the company's Pine Mills oil field in east Texas, has been completed, tested, and is now in production.
The Fouke 2 well is ‘exceeding internal expectations’, Nostra Terra said, with a production rate of 145 barrels of oil per day. This is 77% higher than the Fouke 1 production rate of 82 bopd.
Nostra Terra also said that following the completion of the Fouke 2 well, a ‘substantial’ increase in average monthly net operating cashflow is expected. This is due to a 40% increase in production, based on the company's fourth-quarter average output, combined with recent high oil prices.
Looking ahead, the company said it is in the process of completing its Grant East 1 well in west Texas.
Chief Executive Officer Matt Lofgran commented: ‘The Fouke 2 production will have a very positive impact on our cash flow. Given the performance of these wells we anticipate that a substantial allowable increase will be approved which will result in a further step change increase in our cash flow performance. Finally, I am looking forward to the results of the Grant East 1 completion and simulation activity concurrent with the completion of the field facilities.’
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